Trust me on this one, I have looked at every angle. I have looked over the credit reports and there are no existing liens. It is not coded as HI anywhere, not on the application, not in the memos and not on our software. And, since these were canceled/denied, most of them do not have settlement statements to show if any of the proceeds were going to the purchase of another dwelling.
I am going with all your advice. I will remove them from the LAR and document the GMI exception. I don't think there really is any other option.